SIU uncovers R3.3 million Fort Hare student accommodation overcharges

The Special Investigating Unit (SIU) has uncovered more than R3.3 million in alleged overpayments linked to student accommodation at the University of Fort Hare (UFH), with service providers now being forced to account for money paid above the amounts stipulated in their lease agreements.

The SIU said it has secured acknowledgments of debt totalling R3,334,808.30 from two service providers following an investigation into alleged overcharging at the university.

A third service provider, Lynton and Harmony, has already paid R103,829.96 directly into the SIU's bank account.

The investigation found that certain accommodation service providers had received payments exceeding the amounts provided for in their lease contracts.

The SIU said it reached this conclusion after analysing UFH's financial records and student accommodation agreements.

One of the providers, Younus Atcha, trading as Equicent Eastern Cape Developments (Pty) Ltd, signed an acknowledgment of debt for R302,814.50 and has since settled the full amount.

The Tshongwane Trust signed an acknowledgment of debt for R2,928,163.84.

It has so far repaid R1.62 million, but still has an outstanding balance of R1,665,290.41, including interest.

The recovery forms part of the SIU's broader investigation into alleged irregularities at UFH.

The investigation was launched under Proclamation R84 of 2022 and later amended through Proclamation R194 of 2024.

The probe covers alleged irregularities relating to procurement and contracting, as well as maladministration and misconduct involving current and former university officials.

The SIU has also referred nine disciplinary cases involving former and current UFH officials linked to the leasing of student accommodation.

The latest findings put the spotlight on how public universities manage accommodation contracts and payments, particularly where service providers receive amounts that differ from the terms agreed in their leases.

The SIU said its investigation and recovery efforts remain ongoing as it works to ensure that public funds are accounted for and that those responsible for irregularities face appropriate consequences.